This sounds like a very good idea BUT...

Joe - my mortgage is in no one's name but my own. What effect that would have I don't know, but it wasn't relevant.

AT - I think that may be because graduates are more likely to have a solid, reliable income so it's a safer bet. But I think anyone, graduate or not, earning 22k would be able to get £80k lent on top of a £70k deposit because it is a very safe proposition for a building society. £80k on top of £0 is much less likely.

 

Haha thats me out of the property game then. If they take one look at my parents credit history they would be charging me £2m in interest.

 

With two daughters not far off property-owning age, it might soon be relevant for me though! As well as subbing them through education, I have the prospect of underwriting their debts until the year dot to look forward to. My cunning plan is to marry them both off to millionaires.

 

I had the deposit and earning capability for a purchase in 1997, but was on a) a fixed 3 year contract and b) probation for that contract. I wasn't prepared to gamble my dad's house (that they'd had to fight tooth and nail for all their life) on that. When the contract was permanent, the prices on houses had DOUBLED. Yes, DOUBLED. IN THREE MONTHS. From £43k to £88k on the property I'd had my eye on.

As for the bank lending me 80K, as I said before, assuming my mum lives to the average female age (83 IIRC), that's 14 years away. By then houses won't be available for under a million, at the current ridiculous inflation rates.

Given the toss, I'd MUCH rather have mum around than keep chasing unobtainium.

As for wiring/Persimmons, my sister and her nextdoor neighbours were very lucky; the wiring in next door was so dangerous it kept fusing the main circuit breakers - total hamfisted, piss poor construction, and the 10 year house builder guarantee is shit as well.

 

I am getting a bit worried now, what does underwritting mean? Does it mean the mortage will be secured against your parents house? Will your parents credit history effect the ability to get a mortage? I have a good credit record (because of ebay - wtf?) but my parents don't.

 

Underwriting is the same as garantor (IIRC), so yeah, your parents' house is collateral secured against your loan. I might be wrong though.

EIther way, mum wanted me to do it and I put my foot down. That cost me about £100k in lost money, but you can only go on the knowledge you have at the time. This was 2 months before Labour came in initially, and I wasn't willing to take the risk of christ knows what going on when/if the new party (whoever it was going to be) got into power. If I knew then what I know now....

 

Nobody suggests it is going to be easy. We all have to look at your own situation and make it happen. Yes even if it means looking at possibly lowering your aim for that original £120-130k flat if you think that amount of windfall is not enough. We've all been there and my brother did it just 2 years ago. Bear in mind you still need to live on bread and butter for another few years after you took the leap. Reflecting back for what is worth the best strategy is turn on your charms big style and hook up with a girlfriend but NOT just any female but one who have a job and have the same desire as you to buy this dream property.

 

Not all of us are inclined to settle with someone. Im not interested in living with someone or even a relationship, I get the impression that doms the same.

 

(Disclaimer) I am not a finanial advisor, but as I understand it, the answers to your questions are basically no and yes in that order.

Underwriting is the same as guaranteeing; the mortgage lender is basically lending you more than you can afford to repay so someone (ie your parents) is saying they will pick up the tab if you fall behind with your repayments.

This doesn't necessarily mean their house is at risk, provided they have sufficient cash or equivalent to make good any shortfall, but the mortgage company will look careful at their credit rating as well as at your own. In the examples I've seen, the parents have to have had a mortgage for at least 3 years and be under 60. No doubt there are other terms and conditions in the small print. Independent legal advice would seem to be sensible before entering into this sort of agreement.

 

I'd settle if I could find one worth settling with, but it'd take me years to find that out.

Why do people get treated like aliens if they choose to stay single? Blooming strange if you ask me! I'm not getting hitched with someone just to buy a house thanks - likewise I'd not go split equity mortage - either with a mate OR a housing association.

Wolfgang - when I earn almost double the average wage for my area, why SHOULD I settle for bread and butter? I worked my arse off to get here, while dole scrounger chav gets the lot for free. I feel I *deserve* a real reward, but as usual, there isn't one.

 

Even worse than choosing to remain single, what if there is no legal framework allowing someone to be anything BUT single in the eyes of the law?

 

a problem faced by many thousands of couples who dont fit into to the husband/wife category

 

better off being single, cos when these chavvy brit women who are now far too fussy get fed up and want to move on, you get shafted and have to pay maintenance and give them the house.
so much for equality
better off with foreign women with a better more traditional ethic and loyalty.

 

Two points
AT said "otherwise my generation will have to pay rent and not be able to buy a house for ever more"
So what? There are parts of the rich west where this is already the case.
Dom said "leave country folk to have the ability to buy where they work."
Well have a word with your country mates who are selling Dom. They don't have to take the highest offer if its from a stranger do they?

Bob

 

I don't ACTUALLY know anyone "countrified" (though if you mis-spelt that you could apply it to Tony Blair ) but I do know this - money talks and BS walks. If you think ANYONE in Devon'll sell for less than the (rip off) market rate, you're mistaken.

As for renting for life - that's all well and good, but since the state pension is total crap, when people like AT and me retire, it's box city time.

 

These people seems to have got it right.

http://news.bbc.co.uk/1/hi/talking_point/4570619.stm

 

I've been away for a couple of days but has anyone mentioned yet that this toss-pot of a chancellor tripled stamp duty on all houses over £250,000 to 3%. At the time, this applied to some of the housing market; now it applies to much of the market. In a few years it will be all of the market.

What a wanker.

 

I actually went round the Rugby site where they are constructing these. I am no structural engineer, so I cant say if it was good or bad..but they are unusual. They are steel frames, delivered to site for each wall. Internal plasterboard is then attached, insulation sheet outside, and then block/brick outside the frame. Building standards are very controlled in the UK so Im sure they tick all the boxes. You couldnt change the layout internally, but in a small starter home that wouldnt be a problem much. I think they looked OK at £55k